Answer 13, 14, and 15 using the following information: Jane plans to open a new business. The equipment will cost $175,000. Jane expects the after-tax cash inflows to be $65,000 annually for 5 years, after which she plans to scrap the equipment and retire to the beaches of Jamaica.

13. What is the project's payback period?

1. A) 2.69 years

2. B) 3.33 years

3. C) 3.67 years

4. D) 4.33 years

5. E) 5.67 years

14. Assume the required return is 17%. What is the project's NPV?

1. A) $887

2. B) $13,322

3. C) $22,759

4. D) $32,957.50

5. E) $80,023.89

15. Assume the required return is 26%. What is the project's IRR? Should it be accepted?

1. A) 14.95%; yes

2. B) 26%; yes

3. C) 27.95%; yes

4. D) 28%; yes

5. E) None of the above